Citigroup shells out $968M to Fannie to settle mortgage claims

TRD New York /
Jul.July 01, 2013 02:30 PM

Citigroup has agreed to pay Fannie Mae a whopping $968 million in an effort to settle potential claims on 3.7 million home loans, HousingWire reported. The agreement, which specifically applies to claims of breaches of warranty and representation, covers first residential mortgages that were sold to Fannie between 2000 and 2012.

“As we work to deepen and enhance financial relationships with our clients, we will continue to focus on the production of high-quality mortgage loans,” CitiMortgage CEO Jane Fraser told HousingWire.

But the agreement does not release the bank from liability on less than 12,000 loans originated during the 12-year span with a performance guaranty or under special credit enhancement programs, according to a Citigroup statement.

“Today’s agreement resolves legacy repurchase issues, compensates taxpayers for losses and allows Fannie Mae and Citi to move forward and strengthen our business relationship,” Bradley Lerman, executive vice president of general counsel at Fannie Mae, told HousingWire. “We continue to focus on making strong progress in resolving repurchase requests with other lenders, and remain committed to helping people to buy, refinance or rent a home.” [HousingWire]Zachary Kussin


Related Articles

arrow_forward_ios
Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

1735 York Avenue and Bonjour Capital's Charles Dayan (Credit: Google Maps)

Dayan’s Bonjour Capital inks $115M refi for Upper East Side building

Anna Castelini and 601 Lexington Avenue (Credit: LinkedIn and Andrew Moore via Flickr)

DeKalb Market Hall creator bringing new food hall to Midtown

Wells Fargo, JPMorgan Chase and Citigroup each recorded a rise in second quarter profits in their consumer divisions (Credit: iStock)

Banks see uptick in mortgages, but remain wary ahead of potential Fed interest rate cut

FHFA director Mark Calabria is ready to set Fannie and Freddie free, while Wall Street worries about potential risks.

Wall Street warns against privatizing Fannie and Freddie without Congress guarantee

FHFA director Mark Calabria (Credit: Federal Housing Finance Agency and Getty Images)

Trump official to pressure Congress to privatize Freddie and Fannie

FHFA director Mark Calabria (Credit: Federal Housing Finance Agency and iStock)

Trump’s move to take Fannie and Freddie private could mean higher mortgage costs

President Donald Trump (Credit: Getty Images)

Mortgage guarantors Fannie Mae and Freddie Mac to return to private control

arrow_forward_ios